This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 10 Financial Markets – Quiz 63 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 10 Financial Markets Quiz 63 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Savings is defined as ..... A) Deferring or postponing any expenditure to a future date. B) Using the saved money with the aim of making it grow. C) All the above. D) None of the above. Show Answer Correct Answer: A) Deferring or postponing any expenditure to a future date. 2. ..... and ..... allow a financial intermediary to offer safe liquid liabilities such as deposits while investing the depositors' money in riskier illiquid assets. A) Monitoring; diversification. B) Primary markets; foreign exchange Markets. C) Price risk; collateral. D) Diversification; high equity returns. E) Free riders; regulations. Show Answer Correct Answer: A) Monitoring; diversification. 3. SEBI regulates: A) Banking operations. B) Stock exchanges & capital markets. C) Pension disbursement. D) Insurance premiums. Show Answer Correct Answer: B) Stock exchanges & capital markets. 4. What is a mutual fund? A) A mutual fund is an investment vehicle that pools money from multiple investors to buy a diversified portfolio of securities. B) A mutual fund is a type of bank account for saving money. C) A mutual fund is a government bond that guarantees returns. D) A mutual fund is a loan given to businesses for expansion. Show Answer Correct Answer: A) A mutual fund is an investment vehicle that pools money from multiple investors to buy a diversified portfolio of securities. 5. As interest rates go down, bond prices go ..... A) Up. B) Down. C) Stay the same. D) It depends. Show Answer Correct Answer: A) Up. 6. Which of the following financial organizations specializes in buying installment contracts from merchants who sell on credit? A) A credit union. B) A finance company. C) A bank. D) An insurance company. Show Answer Correct Answer: B) A finance company. 7. Equity shares have mostly ..... all other forms of investments in the long term. A) Remained neutral when compared to. B) Outperformed. C) Underperformed. D) Given negative returns when compared to. E) Not Attempted. Show Answer Correct Answer: B) Outperformed. 8. Who issues treasury bills( T-bills) in Malaysia? A) BNM. B) Investment Banks. C) Malaysian Government. D) Commercial Banks. Show Answer Correct Answer: C) Malaysian Government. 9. Regulator of Secondary market is A) RBI. B) SEBI. C) IRDAI. D) PFRDA. Show Answer Correct Answer: B) SEBI. 10. The Inquiry Window provides: A) Real-time trade prices. B) Detailed market data and analysis on selected securities. C) A platform for placing orders. D) Only price information. Show Answer Correct Answer: B) Detailed market data and analysis on selected securities. 11. In a private placement, the securities are offered and sold to a limited number of investors. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 12. An investor who are seeking greater market uncertainty and market fluctuations, and they often pursue short-term, growth investments in anticipation of a higher investment return. A) Bears and pigs. B) Bulls and chicken. C) Risk-neutral. D) None of the above. Show Answer Correct Answer: A) Bears and pigs. 13. What is currency hedging? A) Investing in foreign stocks. B) Converting currencies for trade. C) Insuring against losses from exchange rate changes. D) Buying currencies for speculation. Show Answer Correct Answer: C) Insuring against losses from exchange rate changes. 14. A forward exchange occurs when two parties agree to exchange currency and execute the deal at some specific date in the future. A) Past. B) Present. C) Future. D) None of the above. Show Answer Correct Answer: C) Future. 15. The term of the Treasury Bill cannot be more than ..... year. A) One. B) Two. C) Five. D) Ten. Show Answer Correct Answer: A) One. 16. A person who invests in mutual funds is choosing an investment that A) Has the lowest risk and the lowest returns. B) Has the highest risks and the highest returns. C) Has the highest risks and the lowest returns. D) Has a balance of low risk/low return and high risk/high return option. Show Answer Correct Answer: D) Has a balance of low risk/low return and high risk/high return option. 17. Which of the following is a development bank? A) NABARD. B) SIDBI. C) IFCI. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. Explain the concept of Beta in systematic risk. A) Beta measures a company's total market value. B) Beta measures systematic risk by indicating a stock's volatility relative to the market. C) Beta indicates a stock's price trend over time. D) Beta reflects the overall profitability of a stock. Show Answer Correct Answer: B) Beta measures systematic risk by indicating a stock's volatility relative to the market. 19. Investor will not get benefit of compounding in A) Dividend reinvestment option. B) Growth option. C) Dividend payout option. D) All of the above. Show Answer Correct Answer: C) Dividend payout option. 20. Bank capital is equal to ..... minus ..... A) Total assets; total liabilities. B) Total liabilities; total assets. C) Total assets; total reserves. D) Total liabilities; total borrowings. Show Answer Correct Answer: A) Total assets; total liabilities. 21. Select correct statement from below A) ETFs are active fund. B) ETFs are passive fund. C) ETFs not traded on stock exchange. D) ETFs invest in equity only. Show Answer Correct Answer: B) ETFs are passive fund. 22. What is a stock exchange? A) A stock exchange is a place for buying and selling real estate. B) A stock exchange is a marketplace for buying and selling stocks. C) A stock exchange is a type of bank. D) A stock exchange is a government agency. Show Answer Correct Answer: B) A stock exchange is a marketplace for buying and selling stocks. 23. The interest rate paid on a bond A) Coupon rate. B) Par Value. C) Bond premium. D) Capital gain. Show Answer Correct Answer: A) Coupon rate. 24. The 2 major stock exchanges in NYC A) New York Stock Exchange & Nasdaq. B) Nasdaq & Chicago Board of Trade. C) London Stock Exchange & Nasdaq. D) The USA Exchange & the S&P 500. Show Answer Correct Answer: A) New York Stock Exchange & Nasdaq. 25. If a bank has $ 100, 000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $ 40, 000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is A) $ 30, 000. B) $ 25, 000. C) $ 20, 000. D) $ 10, 000. Show Answer Correct Answer: B) $ 25, 000. ← PreviousNext →Related QuizzesClass 12 Business Studies Chapter 10 Financial Markets Quiz 1Class 12 Business Studies Chapter 10 Financial Markets Quiz 2Class 12 Business Studies Chapter 10 Financial Markets Quiz 3Class 12 Business Studies Chapter 10 Financial Markets Quiz 4Class 12 Business Studies Chapter 10 Financial Markets Quiz 5Class 12 Business Studies Chapter 10 Financial Markets Quiz 6Class 12 Business Studies Chapter 10 Financial Markets Quiz 7Class 12 Business Studies Chapter 10 Financial Markets Quiz 8Class 12 Business Studies Chapter 10 Financial Markets Quiz 9Class 12 Business Studies Chapter 10 Financial Markets Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books